Tesco to shed 140 HQ jobs after shift to UK products
Whatare the implications of retail giant Tesco's decision to lay off 140 staff at its headquarters in Dún Laoghaire which followed its decision to import more goods directly from the UK rather than sourcing them through Irish suppliers to rural communities. The British-owned multiple says the restructuring of its Irish head office is the result of changes in its supply structures and the market generally. Earlier this week The Irish Times revealed the company makes annual profits of about €250 million in the Republic. Profit margins in Ireland are 9.3 per cent, significantly higher than in other parts of the group.
Has anyone out there carried out research into the impact of companies like Tesco on rural areas?
What is our role as Rural Development practitioners?
Is this an inevitable implication of our open-market system or should there be an onus on policy-makers to protect indigenous enterprise.
Any thoughts?
This reminds us of our exposure to multinationals. We should look long and hard at alternative means of feeding ourselves. Examples such as Transition towns, and community gardens are becoming increasingly promising alternatives (and in the case of community gardens) springing up everywhere.
In the 1920's the fledgeling state provided rural council houses with large plots of ground which enabled the occupants to grow vegetables, keep a pig which would be fed on the scraps of large families and a couple of chickens. The famine was within living memory.
This might appear alarmist but economic theories by respected economic commentators of the onset of degrowth in the wake of peak oil should give us food for thought.
I'm no fan of Tesco but its very hard to make a call on their new sourcing plans. I suppose the bottom line is that thousands of Southern customers are pouring across the border for their weekly shop. Can't blame them, money is tighter so savings can be made. If Tesco want to maintain their profits, they'll squeeze their wholesalers/suppliers in order to reduce customer prices. The problem as I see it is that Tesco has a presence both North and South so it probably doesn't bother them where we purchase our goods, once its from Tesco. If on the other hand Southern customers went north and shopped exclusively at a solely Northern/UK based retailer then a Southern based Tesco would be forced to compete to regain market share. My opinion is that the situation is being used to test the limits of the southern wholesalers/suppliers.